How do you determine the going rate for a project?
I've recently been asked by several writers how they know what to charge for a project. While I usually direct them to the Writer's Market Rate Chart, I also recommend that they call around to competing companies in their area and find out the fees for similar projects. How do you decide what to charge for a writing project - especially if it is something you haven't done before?
Good Answers (4)
Alan S
Marketing communication strategy and words
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Hi from Detroit to Albuquerque, Lisa:
Always important to determine . . . and always tough to do so. Comes down to what our experience, knowledge, skill, creativity and reliability are worth -- a philosophical question that needs a practical answer.
No formula for that. And oh yes, did I mention geographic variables in supply/demand and cost of living?
There is no "going rate" because we're selling creative originality, not a commodity. Never ever lose sight of that, I respectfully suggest.
But not to despair . . . or guess. Your questioners -- and you -- should get a sense of of fee ranges in your area (geographic or industry-specific) by talking with other writers, PR agency staffers and clients/editors who use writers.
Next step is determine where they/you fit on the experience continuum -- confidently, and also realistically.
Lastly, fees vary by project based on:
* Projected time (including research and client meetings)
* Degree of difficulty (including client relationship, if known)
* Specialized knowledge
* Factors such as client size, deadline (nights/weekend rush job or one that can fill downtime) and client relationship (new or long-term -- I start a bit lower for the former 'til they see quality).
In other words, estimate the hours and do the math.
I hope this helps. I also recommend the Well-Fed Writers blog and free monthly newsletter prepared by Atlanta commercial writer and author Peter Bowerman (link below) . . . who defines his audience as self-employed writers earning $50 to $125+ an hour.
And that, Lisa, is as close to a "going rate" formula as we'll find!
Links:
Clarification added 7 months ago:
This constructive conversation deserves to be an interactive dialogue, so I hope Ruth in Rochester (5th reply) doesn't mind a respectful 'ahem' on this points:
< "Some of my clients pay by the word . . ." >
I hope you get $2 to $5 a word, Ruth. Whatever works fairly and profitably is obviously good, but none of my clients pay that way for professional services and I'd never accept such an arrangement. We're strategic communication consultants, professional writers, marketing advisers . . . pick your phrase. But we are NOT piecework word assemblers and shouldn't think of ourselves that way. Imagine a lawyer charging by the word for a legal brief or an engineer doing so for an analytic report.
Granted, it's unclear what type of writing Lisa and her associates do, but here's more of my take anyhow:
By-the-word freelancers write for trade journals, consumer mags and community newspapers. Professional commercial writers help clients shape marketing campaigns, brand identity, customer relation management, internal communications, training materials and media relations.
Our hourly or project fees, which I assume are the foundation of Ruth's business model, reflect an intellectual and creative process that I couldn't monetize on a per-word basis. (And no, that's not the type of jargon I'd ever use in copy!)
Even time-based rates have to reflect project scoping, message development, research, account administration and other time investments.
IMHO, per-word rates suggest a novice or temporary status rather than an established business.
That said, I concur 100% with Ruth's guidance that project agreements ALWAYS set a limit on revisions. Mine say "up to two rounds without a significant assignment change."
Tony R
We write and produce outstanding TV commercials for a surprisingly low cost.
By the hour for new clients. When they come back for more, by the project.
Links:
Dave G
Editor-Writer, Pacific Consultants Group, Inc., Ready to Edit for You, dgardner95376@gmail.com
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Hi Lisa,
In addition to the Writer's Market Rate Chart and Peter Bowerman's two books (and newsletters), Bob Bly has some good references: "Secrets of a Freelance Writer", "Selling Your Services", and "Copywriter's Handbook" to name a few. All are good in that they provide the metrics that you can apply to your own situation to come up with YOUR rate.
YOUR RATE has many variables and dependencies (like all of us in this profession), so you have to determine what you want your career/income to be. If there are 2000 billable hours in a year (40-hours/week, 50 weeks/year) (but in actuality, only 1000 realistically billable hours--divide the 1000 hours into what you'd like your annual income to be.
The result is your billing rate. But, folks will nickel and dime you .... so try to charge by the project after you get a sense of what you are walking into.
I used to live in ABQ. Corner of Chelwood and Lomas (near Juan Tabo) across from High School. Nice apartment complex. I was an editor/writer for Dept of Energy at Kirtland. I also freelanced a lot there. New Mexico Wildlife Magazine mostly ... Alamogordo Daily News...
I tried to get some articles published in Albuquerque Journal (travel pieces and business pieces) but they seemed to be a tough nut to crack. Nice rejection letters, however.
So, how's the market in Albuquerque for freelance editing and writing? The Kachina Chapter of the Society for Technical Communication and the International Association for Business Communicators used to be very active. The IABC used to have regular meetings at the New Mexico Power Company building in downtown ABQ. They were a handy place for me to meet potential clients.
Best of luck!
Ruth E. T
Freelance writer, editor, speaker; author, "Get Paid to Write! Getting Started as a Freelance Writer" www.writerruth.com
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The Editorial Freelancers Assn. (www.the-efa.org) has information about ranges of rates, with the caveat that the information reflects only those EFA members who responded to its survey.
I don't worry about "going rates," though. I set my rates based on what I think I'm worth these days and what I think I can get. Some of my clients pay by the word, some by the hour, some by the project. (If I accept a project rate, I make sure the agreement or contract includes a limit on revisions; it's very easy to commit to a project rate and end up making peanuts because of constant revisions for a client who doesn't really know what they want.)
